Just wanted to add that I had the exact same codes (971 and 570) last year when I filed in February. Like others mentioned, it was just a routine review - they were verifying my dependent information since I had claimed my nephew for the first time. The waiting is definitely the hardest part, but try to stay patient. One thing that helped me was setting up IRS2Go app notifications so I could check my transcript status without constantly logging into the website. Also, make sure your address is current with the IRS since they'll be mailing you that notice. In my case, the review took exactly 21 days from the 971 date, and then everything processed normally. The notice I received was pretty straightforward and just confirmed they had verified my information. Your situation sounds very routine based on what you've described!

I've been helping people with transcript codes for years, and the 971/570 combination you're seeing is honestly one of the most routine ones during tax season. The IRS is essentially saying "we got your return, we're taking a closer look at something, and we'll send you a letter explaining what." Since you filed in February and the 971 is dated 04-15-2024, you're right on schedule for a typical review. The cycle code 20240805 indicates normal processing, not an audit or major issue. Most likely scenarios: they're verifying your W-2 data matches what employers reported, double-checking any credits you claimed (especially if you have kids or claimed education credits), or confirming your filing status. The key thing is that 570 holds usually release automatically once their systems verify everything matches up. You'll see a 571 code appear when the hold lifts, followed by a refund date within a few days. Based on your timeline, I'd expect movement in the next 1-2 weeks. The notice you receive will be pretty basic - usually just confirmation that they reviewed and approved your return.

Has anyone here used a specific tax form or schedule to report the RSU loss? I'm trying to figure out if this goes on Schedule D or if there's another form I should be using for RSU-specific losses where I couldn't sell immediately due to company restrictions.

This is such a frustrating situation, but you're definitely not alone in dealing with this! I had a similar experience where my RSUs dropped 20% during a blackout period and I felt like I was being taxed on money that evaporated. One thing that helped me was working with my tax preparer to make sure I was tracking everything correctly. Since you're dealing with both income tax on the vesting value AND capital losses on the sale, it's important to keep detailed records of: 1. The exact vesting date and share price 2. The date restrictions were lifted 3. Your actual sale dates and proceeds 4. Any shares you're still holding Also, don't forget that if your total capital losses exceed $3,000 in a year, you can carry the excess forward to future tax years. Given how volatile some stocks have been lately, those carried-forward losses might come in handy for offsetting future gains. It really is an unfair system when you're essentially penalized for company policies you have no control over, but at least the capital loss treatment helps offset some of the pain. Hang in there!

Has anyone here dealt with allocation of shared utilities in a situation like this? I'm in a similar position with a commercial/residential mixed building and I'm confused about how to handle common area utilities when part is business and part is personal.

One thing I'd strongly recommend is getting everything documented properly from the start. When we did a similar conversion, our CPA advised us to create a formal "conversion plan" that outlined exactly when each unit would transition from business to personal use, along with the square footage allocations. This documentation became crucial later when we had questions about which improvements qualified for depreciation. We included photos of the property before improvements, detailed cost breakdowns for each area, and a timeline of when different spaces would change use. Also, consider whether you want to elect out of bonus depreciation for some of these improvements. While bonus depreciation gives you bigger deductions upfront, it can create complications if you convert units to personal use shortly after. Sometimes taking regular depreciation over the longer schedule gives you more flexibility, especially with mixed-use properties like yours. Your accountant will probably want to see all this documentation, so getting it organized now will save you time and potentially money in professional fees later!

I had a very similar situation with my dissolved partnership and want to share what worked for me. Like you, I thought no filing was needed for a year with zero activity, but learned the hard way that the IRS still requires that final return. Here's the exact process I followed that got my penalties fully waived: 1. Filed Form 1065 for the dissolution year with all financial lines showing zeros 2. Checked the "Final Return" box prominently at the top of Form 1065 3. Prepared Schedule K-1s for each partner marked as "Final K-1" 4. Included a separate statement with the business name, EIN, and exact dissolution date For the penalty abatement, I wrote a detailed reasonable cause letter explaining that I had carefully read the Form 1065 instructions and genuinely believed no return was required when there was no income, expenses, or business activity. I emphasized that this was an honest misunderstanding of the tax code, not willful neglect. The IRS accepted my explanation and waived all penalties (which would have been over $2,000). The key is being thorough in your documentation and showing you made a good faith effort to comply based on your understanding of the rules. Don't let that IRS rep confuse you about amending 2019 - you definitely need to file the 2020 return as your final return since that's when you actually dissolved. Good luck!

I went through this exact same situation with my LLC that dissolved in 2019. The confusion about whether to file when there's zero activity is incredibly common - the IRS instructions really aren't clear on this point. You absolutely need to file a 2020 Form 1065 marked as a final return. Even though you had no income or expenses, the IRS needs this filing to officially close your business in their system. Without it, they'll keep expecting annual returns indefinitely. Here's what I learned from my experience: - File Form 1065 for 2020 with zeros in all financial fields - Check the "Final Return" box at the top - Include K-1s for both members marked as final - Attach a statement with your dissolution date and explanation For penalties, you have an excellent case for reasonable cause abatement. I successfully got mine waived by explaining that I genuinely misunderstood the filing requirements based on reading the instructions. The key is emphasizing that you made a good faith effort to understand your obligations. Ignore that IRS rep's suggestion about amending your 2019 return - that makes no sense. The final return needs to be for the year you actually dissolved (2020). I've seen other people in this forum successfully resolve similar situations, so don't stress too much about the late filing.

This is such a timely question! I just went through this exact situation for my 2024 taxes. I'm registered in Texas but placed winning bets while traveling for work in Nevada, Louisiana, and Arizona. After consulting with a tax professional, here's what I learned: technically, you're supposed to file nonresident returns in each state where you physically placed winning bets, regardless of where you're registered with the app. The key factor is your physical location when the bet was placed, not your registration address. However, the enforcement is still inconsistent. Some states are getting more aggressive about tracking this (especially states with higher tax rates who want their piece), while others haven't caught up yet. The apps do track your location for regulatory compliance, and this data is increasingly being shared with state tax authorities. For your situation, I'd recommend keeping those detailed records you mentioned and filing properly in each state where you had significant winnings (maybe $500+ threshold). You can then claim credits on your Ohio return for taxes paid to other states to avoid double taxation. If we're talking smaller amounts, the risk might be low, but with the trend toward more enforcement, it's probably safer to file correctly from the start. The hobby vs. professional distinction doesn't change the sourcing rules - winnings are still taxable where the activity occurred regardless of how you classify your gambling activities.

Based on my experience dealing with this exact issue, the answer is unfortunately "it depends" on several factors. The general rule is that gambling winnings are taxable in the state where you were physically located when placing the bet, not where you're registered with the app. However, there are some practical considerations: 1. **Amount matters**: For smaller winnings (under $500-1000 per state), many tax professionals suggest the enforcement risk is relatively low and you might choose to report everything on your home state return. 2. **State-specific rules**: Each state has different filing thresholds and requirements. Some require filing for any amount, others have minimum thresholds. 3. **Documentation**: Since you're already keeping detailed records showing where each bet was placed, you have the information needed to file correctly if you choose to do so. 4. **Hobby vs. Professional**: This classification doesn't change the sourcing rules for where winnings are taxable, but it does affect how losses can be deducted and reported. My recommendation would be to check the specific filing requirements for each state where you had winnings over $300-500, and consider filing nonresident returns for those states. You can then claim credits on your Ohio return for taxes paid to other states to avoid double taxation. The trend is definitely moving toward more enforcement as states get better at tracking mobile betting data, so filing correctly from the start might save you headaches later.